I’m seeing a number of technical alerts lining up for a bounce on crude oil!
Do market elements assist a continuation of the climb?
Right here’s what I’m lookin’ at:
WTI Crude Oil: 1-hour
WTI Crude Oil: 1-hour Chart
Crude oil has been drawing assist from geopolitical tensions currently, because the prospect of extra sanctions on Russian oil is holding markets cautious of an power crunch.
The commodity is in correction mode, although, discovering assist at a short-term rising channel that’s in step with the 100 SMA dynamic assist.
This faster-moving MA is above the 200 SMA to verify that the climb is extra more likely to resume than to reverse. To high it off, Stochastic is suggesting that sellers may use a break, and the oscillator is exhibiting a bullish divergence, too!
If present ranges maintain as assist, crude oil may discover its manner again as much as the channel resistance on the $120 per barrel mark.
This may additionally be sufficient to verify a breakout from the neckline of the inverted head and shoulders sample highlighted above. In that case, the commodity may be in for waaay extra upside, probably rallying by the identical peak because the reversal formation.
Simply be sure to hold tabs on headlines about Russia, as world leaders are upping the strain on the nation to cease the assaults on Ukraine.
Any indicators of easing tensions would possibly immediate profit-taking and a break decrease for crude oil. Higher hold a watch out for potential weekend gaps additionally!
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